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Applying to Mortgage Lenders: How Many Are Necessary

Applying to Mortgage Lenders: How Many Are Necessary

Some lenders ramp up closing costs to buy down your interest rate, while others that advertise low or no closing costs offer higher interest rates in exchange. Looking at multiple good faith estimates (GFEs) side by side lets you compare rate and closing cost scenarios to pick the best one for your situation. It generally makes sense to pay higher closing costs for a lower interest rate when you plan to keep the mortgage for many years, as your interest rate savings eventually surpass the higher closing costs.